2_Title Slide2_Title Slide

Better Buildings Residential Network Peer

Exchange Call Series:

Home Improvement Catalyst: Sequencing Upgrades

and Engaging Homeowners over Time (201)March 24, 2016

Call Slides and Discussion Summary

Call Registrant Locations

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Call Participants – Network Members

Bridging The Gap

Center for Energy and

Environment (CEE)

CLEAResult

Clinton Climate Initiative - Home

Energy Affordability Loan

Energy Efficiency Specialists

Energy Smart Home

Performance

Focus on Energy

Greater Cincinnati Energy

Alliance

Housing Authority of the City of

San Buenaventura

Iowa State University, Department

of Civil, Construction, and

Environmental Engineering

Midwest Energy Efficiency

Alliance (MEEA)

PUSH Buffalo

Southface

3

Call Participants – Non-Members (1 of 2)

AAA ENERGY AUDITS

AJO

AppleBlossom Energy Inc.

BKi

Blue House Energy

Blue Ridge EMC

Build It Green

Building Performance Center Inc.

Cascade Natural Gas Corporation

Connecticut Green Bank

County of San Luis Obispo

CSRA

ecobeco

Ecolighten Energy Solutions Ltd.

Efficiency Nova Scotia

Energy Solutions

Flathead Electric Cooperative

Florida Solar Energy Center

Greenspring Building Systems Inc.

Groundswell

Holy Cross Energy

House So Green

iAQ Systems

JOHNSON A/C

4

Call Participants – Non-Members (2 of 2)

Lincoln Electric System

La Plata Electric Association

Margiotta Architecture & Planning,

LLC

NANA

National Renewable Energy Lab

Navigant Consulting

Nexant

NJIT Center for Building Knowledge

Natural Resources Canada

NW Energy Coalition

Parker Interests Unlimited

Plant Vogtle

PosiGen Solar

Proctor Engineering Group,

Ltd.

Rocky Mountain Institute

SEEC LLC

Smith & Boucher Engineers

Solar Habitats, LLC.

Technicore Engineering

Designers Inc.

TRC

UpGrade Ohio

Utah Energy Conservation

Coalition

Virtuelements

Wise Home Energy 5

Agenda

Agenda Review and Residential Network Overview

Home Improvement Catalyst Update, Steve Dunn, U.S. DOE

Featured Speakers:

Julie Hayes, Milepost Consulting (Network Member)

Ellen Qualls, Renovate America (Network Member)

Q&A and Discussion:

What are effective messages for motivating homeowners to

undertake upgrades over time?

How can programs engage and support contractors in this

process?

What internal tools and systems are helpful for contractors and

programs?

Closing Poll and Upcoming Call Schedule

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Opening Poll

What best describes your experience with

engaging homeowners in undertaking home

performance upgrades over time?

Actively involved in this work – 51%

Some relevant experience – 29%

No experience—just learning about it today – 17%

Other (please chat in) – 2%

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Benefits:

Peer Exchange Calls 4x/month

Tools, templates, & resources

Recognition in media, materials

Speaking opportunities

Updates on latest trends

Voluntary member initiatives

Residential Program Solution

Center guided tours

Better Buildings Residential Network: Connects energy efficiency

programs and partners to share best practices and learn from one

another to increase the number of homes that are energy efficient.

Membership: Open to organizations committed to accelerating the pace

of home energy upgrades.

Better Buildings Residential Network

Commitment: Provide DOE with annual number of residential

upgrades, and information about associated benefits.

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For more information or to join, email bbresidentialnetwork@ee.doe.gov

U.S. Department of Energy

Steve Dunn, Project Manager

Steve DunnBuilding Technologies Office

Home Improvement Catalyst: Sequencing Upgrades and Engaging Homeowners Over Time (201)

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Home Improvement Catalyst (HI Cat)

Purpose: Identify and prioritize activities where DOE can have the greatest impact in accelerating adoption of energy efficient measures at key home improvement transactions.

Objectives:

• Focus on demonstration of individual measures, packages or practices especially in heating and cooling.

• Improve decisions during typical home improvement transactions including higher efficiency measures and systems approach.

• Provide support where there are gaps(e.g., few utility incentives, lack of industry standards, complicated code compliance, need for handoff from Building America, installation issues).

• Expand and demonstrate RBI’s impact to reach more partners and more homes on a national scale (less savings per home than other RBI activities but on a wider scale).

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The HI Cat Process Framework

Screen & Prioritize

Assess Opportunity

Map Market

Strategies

• Conduct evaluation of home improvement products and services: technical potential, scalability, energy and dollar savings, etc.

• Stakeholder outreach to prioritize opportunities and

“down select” home improvement measures for focus

Systematically assess technical and market barriers of “down selected” measures, identifying

• Pre-market activities , such as R&D, industry testing, etc.

• Market demonstrations in collaboration with Programs, manufacturers, retailers, and contractors

Formulate actionable plans that consider:

• The value proposition for the entire transaction chain

• Lessons learned and results from demonstration efforts

• Market strategies to demonstrate and exit strategy to reach scale

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The Need: What are Stakeholders Indicating?Stakeholder

GroupChallenges and Opportunities

Needs/Interests

Program Administrators

• Product availability• Contractor

reluctance• Transaction costs• Uncertain consumer

demand• Cost-effectiveness of

installation• Unverified energy

savings• Regional and housing

diversity

Enabling investments in EE upgrades overtime

Need: Application of staged scores, with recommendations

Engaging more trades in better HVAC installation

Need: Tools for estimating energy savings and measure selection

Manufacturers, Trades, and Retailers (HVAC, Insulation, HomePerformance)

Advancing the customer for life concept

Needs:

• Messaging about the pathway,including use of a tool like the Home Energy Score

• Technical standards and guidance

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Enabling strategies for better performance in homes

Facilitate program collaboration to collectively address challenges and share lessons learned

Develop specific resources to support programs in offering incremental approaches to home upgrades

Engage mid and upstream actors in demonstration of effective models to boost sales of energy efficient technologies and practices

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Sequencing Guide Example: Heating and Cooling Trade

#1 Value Proposition: Sell/install equipment and/or service agreement

Install Efficient Mechanical systems: HVAC (including ducts)

Ensure Guiding Principles

Lighting, Appliances,

Plugload

Domestic Hot Water

AS/Insulation, Roofing, Siding

Doors, Windows

Offer Recommendations

Make sure upgrade will not cause safety problems

Ensure a safe home

Make sure upgrades allow for adequate air exchange and local exhaust

Assure fresh airMake sure upgrades mitigate moisture and assemblies stay dry

Ensure moisture protection

Provide air sealing and air barriers and verify with test

Create a draft free home Add insulation in

attics, walls, floors to meet or exceed IECC 2009

Offer thermal comfort

Draft Concept

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Sequencing Guide Example: Insulation/ remodeler Trades

#1 Value Proposition: Sell/install equipment and/or solve homeowner comfort/design needs

Draft Concept

Join us @ ACI National Home Performance 2016

Monday, April 4 at the Home Performance with ENERGY STAR

Partner Meeting, special afternoon breakout session:

Home Improvement Catalyst - Leveraging the home improvement marketplace for

energy upgrades

Wednesday, April 6, 1:30pm during ACI Core Sessions: The Value Proposition Challenge, showcasing TVA and Eversource

Thursday, April 7, 10:30am during ACI Core Sessions: America’s Building Blocks to High Performance Housing

Program Updates: Home Improvement Catalyst

(HI Cat) Conducted extensive interviews with contractors, trades,

manufacturers, etc. to solicit stakeholder feedback on barriers and

concerns with program design and resources.

Program improvements will address three main areas:

Providing tools and resources for estimating energy savings and

measure selection

Application of staged scores, with recommendations

Advancing the “customer for life” concept

Sequencing guides will help contractors:

Identify proper processes when selling/installing equipment

and/or solving homeowner comfort/design needs.

Help contractors and homeowners get back on track when

measures may not happen in the preferred sequence.

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Milepost Consulting

Julie Hayes, Senior Project Manager

LESSONS

LEARNED IN

ENGAGING

HOMEOWNERS

OVER TIME

Julie Hayes, Director

Milepost Consulting, Inc.

March 24, 2016

Nation’s largest public

utility

Covers seven states, 80,000

square miles and 9 million

people

155 local power company

“customers” who serve end

use customers

Serve more customers with same budget

Reduce administrative costs

Create a simple, centralized platform

Program Design Goals

Barrier Removal Strategy

Engage residents past ‘one and done’

Eliminate pre-evaluation requirement

Reduce paperwork

Simplify reporting

Improve value proposition for trade allies

Increase transparency

Process

Piloted

Program with

Key Customer

Analyzed Data

and Customer

Touch Points

Conducted

Qualitative

Research with

Key Stakeholders

Tested Design

with Target Market

Integrated Behavior Change

Best Practices

Findings Drive eScore Philosophy

1 2 3 4

CUSTOMER CENTRIC

Designed to enhance and

support customer experience over the time it takes

to get a 10

CONTRACTOR

DRIVEN

Quality Contractor

Network provided with tools and support they

need to sell the program

TECHNOLOGY

ENHANCED

Delivered using tablet/Smart Phone

technology - no paper, no hassle, no

problem

COST

EFFECTIVE

Streamlined processes reduce cost and support goal of serving

more for the same budget

Multiple Onramps to eScore

eScore Self Audit

Contractor PathPre-score

eScorecard

Highly

personalized

Easy to

understand

1-10 Scoring

Make your

home the best

it can be

Behavioral Insights

• Avoid single action bias and choice

overload with recommended

actions

• Encourage self-efficacy with clear path

eScore Technology

Behavioral Insights

• Relativity and feedback

emphasized with photo layout

within scorecard and Energy

Advisor home visit

• Utilizes foot-in-the-door technique with easy tips throughout

Online portal –

no paperwork

required

Self Audit app

in iTunes and

Google

Play store

Scorecard

updates after

each

improvement

Includes photos

of actual home

and easy tips

eScore Transparency

Behavioral Insights

• Utilizes elimination heuristic to help

customer make informed decision

• Avoids external barrier excuse by

showing customers available, certified contractors in their area

Customers

surveyed after

every Contractor

and Energy

Advisor visit

Results

published

on portal

Results

24,967+EVALUATIONS &

INSPECTIONS

28,415+UPGRADES

$119MCUSTOMER SPENDING

$6.36MCUSTOMER

REBATES

4.9/5.0

CUSTOMER RATINGS

4.6/5.0Advisor average

Contractor averageFIELD CAPACITY

+45%

Lessons Learned

o Utilize behavior change best practices and customer driven design to remove

barriers to engagement

o Provide onramps to program thru most likely “real life” scenarios

o Engage customers over time with simple steps that support their timeframe

and budget

o Implement modern technology to engage customers and streamline processes

for contractors

o Build trust with customers and contractors thru transparency

o Research the needs of your salesforce with the same rigor as your customers

https://www.2escore.com/

Presentation Highlights: Milepost

Create different “on-ramps” for customers to join the program:

Portal Up! Contractors enroll customers real time using a smart phone.

eScore Self Audit: Pre-scoring allows customers to conduct a guided evaluation of

their home’s energy efficiency.

Know your customer: eScore conducted extensive interviews during

program design and found:

Comfort and saving money were more compelling for customers than being “green.”

Customers wanted to be able to achieve a perfect score, a 10/10; programs that

make this unachievable may be frustrating and cause homeowners to lose interest.

Customers want choices, but too many choices can be overwhelming.

Give customers options, but provide clear pathways to obtain savings.

Examine “pain points” for contractors to identify where the program

could be more efficient for their needs.

Milepost found that “de-coupling” rebates allowed customers/contractors to obtain

and allocate rebates based on the work the contractor specialized in, such as

separating HVAC and duct-sealing work rebates.

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Renovate America, Inc

Ellen Qualls, VP for Communications & Public Affairs

35© 2016 Renovate America, Inc. All Rights Reserved.

Promoting the Mass Adoption of Home Energy Efficiency

36© 2016 Renovate America, Inc. All Rights Reserved.

Marketplace Failure

Every year, 1 in 6 homeowners will upgrade or replace a system that affects energy consumption.

• In the United States, that’s 22.5 million homes …

• 3 out of 4 don’t choose the most energy efficient solution …

• That’s nearly 17 million missed opportunities.

37© 2016 Renovate America, Inc. All Rights Reserved.

How PACE Helps

38© 2016 Renovate America, Inc. All Rights Reserved.

Benefits to Property Owners

Protect Access to Credit

Collecting payments

through property taxes

keeps home equity line

and credit card

available for goals or

emergencies.

Increase Affordability

No upfront cash, may

lower utility bills, no

prepayment penalties,

and interest may be tax

deductible.

May Increase Property Values

Studies show energy

investments are

recovered at time of

sale or value of home is

actually increased.

Protect

Housing

A study shows lower

default rates on energy

efficient homes;

deferred maintenance

projects are finally

affordable.

39© 2016 Renovate America, Inc. All Rights Reserved.

Benefits to Government Partners

Private Capital Funds Public Policy Objectives

• No taxpayer money or public risk because PACE

provider securitizes the asset

• Private capital helps meet goals on climate, safe

and affordable energy, access to credit, and jobs

• Real-time impact reporting

• Home improvement industry subject to new,

unmatched consumer protection standards

• Housing stock is modernized through voluntary

measures

Bruce & Kimberly Stagger | HERO Homeowners

“Our electricity bill said ‘you owe 96 cents, do not pay this bill.’ Why doesn’t everyone get HERO?”

– BRUCE STAGGER

40© 2016 Renovate America, Inc. All Rights Reserved.

Renovate America

41© 2016 Renovate America, Inc. All Rights Reserved.

Our Impact

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$2.31 Billion in Economic Impact

+11,000 Jobs Created

+3.5 Billion Gallons of Water Saved

+8.6B kWh of Energy Saved

$2.7 Billion in Utility Savings

+2.25 Million Tons of CO2 Emissions Saved

380+CA Cities &

Counties

42© 2016 Renovate America, Inc. All Rights Reserved.

Our Platform

Renovate America’s PACE program HERO is the leading residential energy efficiency

solution in the nation.

We have:

• A proven track record of $1.3 Billion in financing across 57,000 homes

• A proprietary software platform changing how contractors do business

• 1 million+ product list that ensures only products rated as efficient are installed

• A contractor network of 7,000+ companies

• The most extensive consumer protections of any consumer lending

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43© 2016 Renovate America, Inc. All Rights Reserved.

Our Consumer Protections

Unparalleled Consumer Protections

• We are working with other PACE

providers and government

partners to make these industry-

wide – and confirmed by

independent audits

• Banks and credit card providers

don’t offer the same consumer

protections.

• Our consumer protections and

service even extend beyond

installation …

Selling and refinancing

Even to homeowners who are

not our customers

C O N S U M E RP R O T E C T I O N

H E R OO T H E R

F I N A N C I N G

Contractor Training

Pay Upon Project Completion

Customer Identity Verification

Terms Confirmation

Permit Verification

CA CSLB Confirmation

Product Eligibility Check

Fair Pricing Check

44© 2016 Renovate America, Inc. All Rights Reserved.

HERO Registered Contractors

45© 2014 Renovate America, Inc. All Rights Reserved.

More People Qualify for HERO

HERO Financing70% Approved

FICO Score Credit50% Approved

Cash

46© 2014 Renovate America, Inc. All Rights Reserved.

Trained & Registered Local Contractors

HERO provides a comprehensive

training and registration program,

designed to familiarize contractors

with the financing terms and the

property owner approval process.

Training Covers:

• Sales

• Software

• Product Eligibility

• Document Processing

• Completion Certification

• Payment Options

• Co-Marketing Program

• Brand Usage Guidelines

47© 2014 Renovate America, Inc. All Rights Reserved.

Automated Process

HERO has optimized every step of the job life cycle to ensure property owners have a seamless experience getting

approved, and that contractors are paid quickly when the homeowner is satisfied. Applicants can be approved in

minutes based on home equity and a proven track record of paying their mortgage and taxes.

• Financing closes in 24–48 hours

• Funding is usually within 24–48 hours

48© 2014 Renovate America, Inc. All Rights Reserved.

HERO Pro

HERO Registered Contractors have

access to HERO Pro –an integrated,

secure platform designed to make the

estimating, approval, documentation

and funding process as easy as

possible for homeowners and

contractors.

Features:

• Interactive Sales Tools

• Estimating Calculators

• Energy Savings Calculators

• Financing Document Generation

• Electronic Signature Capabilities

• Information and Updates

• Web-based Training Curriculum

• Marketing Resource Center

• Company-specific webpage at

heroprogram.com/companyname

Presentation Highlights: Renovate America, Inc

Financing is crucial in influencing a customer’s decision to

purchase energy efficient products. Replacements, like HVAC,

are oftentimes unexpected and leave customers grappling

with how to pay.

When third parties, such as contractors, are the main point of

contact to communicate products and services, there is

potential for miscommunication and an opportunity for error.

Minimize this by soliciting customer feedback at several

points in the process to understand how customers are

experiencing the program and ensure quality.

Provide customers with dispute resolution services to raise

the perception in the community that there is someone to turn

to when contractors do not provide quality services.

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Handbooks - explain why and how

to implement specific stages of a

residential program.

Quick Links - provide easy access

to resources on the key issues that

many programs face.

Proven Practices posts - include

lessons learned, examples, and

helpful tips from successful

programs.

See the latest post on “Word

of Mouth” Communications.

Explore planning, implementation, & evaluation

strategies in the Residential Program Solution Center

The Solution Center is continually updated to support residential energy efficiency

programs—member ideas are wanted!50

www.energy.gov/rpsc

Discussion Highlights

Online resources can help at each stage of the process:

Cut down overhead while making products and services more widely

available to customers.

Aid contractors with an online space to keep track of business

licenses, insurance, and renewal reminders.

Educate salesforce through web-based classes and educational tools

for contractors to continue learning without the barrier of attending a

physical class.

Ensure transparency for customers through built in solicitations for

feedback to ensure quality.

Understand “danger points,” where information may be

miscommunicated or left out, to better protect customers and

provide program support.

Financing is a critical part of customer interest in energy efficiency;

Provide resources and materials electronically to help contractors

accurately pitch financing and explain programs to customers. 51

Peer Exchange Call Series

We hold one Peer Exchange call every Thursday from 1:00-2:30 pm ET

Calls cover a range of topics, including financing & revenue, data &

evaluation, business partners, multifamily housing, and marketing &

outreach for all stages of program development and implementation

Upcoming calls:

April 14: Training: How to Get Results - What Matters, What Doesn’t (201)

April 21: Advances in Integrating Energy Efficiency into the Real Estate Market (301)

April 28: Driving Change in Residential Energy Efficiency: Electric Vehicles (301)

May 5: Five and Dime: Revisiting Strategies for Lowering the Costs of Delivering Energy

Efficiency (101)

Send call topic ideas to peerexchange@rossstrategic.com

See the Better Buildings Residential Network Program website to register

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Meet DOE at ACI Sessions, April 5-7

April 5: ▪ Home Upgrade Program Models for Acquiring Savings in Multiple Climate Zones

▪ Residential Energy Labels, Why Should You Care & What Do You Do About It?

April 6: ▪ Showcasing Home Performance with ENERGY STAR Contractors

▪ Transforming the Market with HPXML: Strategies and Lessons Learned

▪ What Building America Learned in 4 Years About Retrofits & Staged Upgrades

▪ Realizing the Market Value for High Performance Homes: Reports from the Field

▪ Health & Home Performance: Unlocking New $, Marketing, & Project Data Value

▪ The Quest for Smarter Performance Measurement

▪ Home Energy Data Huddle: Getting together to Build an Information Pipeline

▪ The Value Proposition Challenge

April 7 ▪ Home Performance Financing Update & Options to Help Close More Jobs

▪ Your Contractors: A Gateway to Better Programs

▪ America’s Building Blocks to High Performance Housing

Download full ACI National Home Performance Conference Agenda for more details

REGISTER TODAY for the

BETTER BUILDINGS SUMMITWashington, DC · May 9-11, 2016

This Summit will bring together Better Buildings partners and stakeholders to

exchange best practices and discuss future opportunities for greater energy

efficiency in America’s homes and buildings.

There will be time set aside for a specific Residential Network discussion

and meet-up! See the draft agenda here.

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LET’S ALL MEET IN MAY!

Thank you!

Please send any follow-up questions or future call topic ideas to:

peerexchange@rossstrategic.com

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